The financial year is soon coming to a closure and like every year, there are a couple of money related matters that you should complete before the calendar hits March 31.
Take a look:
1) PAN-Aadhaar linking
Before March 31, 2022, it is crucial to link your PAN card to your Aadhaar number. If you fail to do so, your PAN card will become inactive and you will have to pay penalty that will be charged via Section 234H of the Income tax act.
It is important to note that the government hasn’t released the amount of penalty as yet. However, the maximum fee to link PAN with Aadhaar after the end of the financial year would be lesser than Rs 1,000.
In case you don’t link PAN and Aadhaar, you will not be able to submit an ITR.
2) Complete KYC in bank accounts
The Reserve Bank of India (RBI) had earlier extended the dates to complete KYC in bank accounts from December 31, 2021 to March 31, 2022. For completing KYC, you have to submit your latest information relating to Aadhaar, passport and other details as required by the bank.
It is crucial for banks to collect the KYC information from customers as mentioned in the Prevention of Money – Laundering Act, 2002, and the Prevention of Money – Laundering (Maintenance of Records) Rules, 2005
3) Link small savings account with PO savings or bank account
As per the Department of Post, individuals have to connect their post office deposit to their post office savings account or bank account. This is crucial because after April 1, 2022, all interest earned under these schemes will be credited to the invester’s post office savings account or bank account that is connected with the scheme. This mandate was mentioned in the latest circular by the
Department of Post. It read, “Interest on MIS/SCSS/TD accounts will be credited only in account holder’s PO Savings Account or Bank Account with effect from 01.04.2022. In case an account holder is not able to link his/her Savings Account with MIS/SCSS/TD accounts up to 31.03.2022 and interest is credited in MIS/SCSS/TD sundry office accounts, the outstanding interest should be paid only through credit in PO Savings Account or by Cheque. The interest payment in cash shall not be allowed from MIS/SCSS/TD sundry office account w.e.f.01.04.2022.”
4) Maintain minimum PPF balance
Anyone who holds a PPF account is required to deposit at least Rs 500 per year in their account. This prevents the account from getting dormant.
In case your PPF account is already dormant, you can activate it by paying a small fee and adding Rs 500 for each year.
5) Availing PMAY housing subsidy
The Ministry of Housing and Urban Poverty Alleviation (MOHUPA) established the Credit Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY- Urban)-Housing for All
project. It is important to note that the third and final phase of the PMAY programme is scheduled to complete on March 31, 2022. If you want to avail benefits of the PMAY, you should do the needful before the above-mentioned date.
6) Update KYC for demat and trading accounts
Based on the circular issued by SEBI in April 2021, the depositories, i.e., NSDL and Central
Depository Services Ltd (CDSL) must ensure that they update six KYC attributes in their existing demat, trading accounts before March 31, 2022. These include, name, address, PAN, mobile number, email ID and income range.
7) File belated or revised income-tax returns
The deadline to file a late income tax for the annual year 2021-2022 has been finalised on March 31, 2022. Those who fail to file ITR before the above-mentioned date, might have to bear a penalty of up to Rs 5,000 as per Section 234F of the Income Tax Act, 1961.
Notably, taxpayers with total income of less than Rs 5 lakh in a financial year will have to bear the , the maximum penalty for late filing, which is Rs1,000.
8) Update KYC in PM kisan
All farmers who have been availing benefits of the PM Kisan Yojana must update their KYC before March 31, 2022. The updating process can be completed online or offline. As mentioned on the PM Kisan website, “eKYC is MANDATORY for PMKISAN RegisteredFarmers. Pls. click eKYC option in Farmer Corner for Aadhar based OP authentication and for Biometric authentication contact nearest CSC centres.
We hope the above-mentioned pointers save you from paying penalties for your finance related matters.
Also, READ: Banks to end THIS FD scheme offer from April 1 – Check details
